Following earnings season in August, scores of ASX companies are paying out millions in dividends to shareholders.

Those participating in dividend reinvestment plans (DRPs) are receiving their new shares, typically on the same day that cash dividends are paid out.

If you'd like to receive any of the dividend payments below, you need to buy these ASX shares before their ex-dividend dates.

Each time a company announces its next dividend, investors have a typically short time period to invest anew or top up their holdings to maximise their dividend income.

Here at The Fool, we do not recommend buying shares in a company you have not researched just to get the next dividend payment.

Our stock analysts say the decision to invest should be much more considered and strategic than that, and based on fundamentals.

Many investors employ a dollar-cost averaging strategy on ex-dividend dates to reduce the average cost of their holdings over time.

These investors already own stock in the company.

They target the ex-dividend date for further purchasing because the share price tends to fall on the ex-dividend day, potentially providing an attractive buy-the-dip opportunity.

Here are 16 ASX shares going ex-dividend next week.

16 ASX shares with ex-dividend dates next week

The post 16 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

An ex-dividend date is the cut-off date for new investors to buy shares before they miss out on the upcoming payout. People need to own shares before the ex-dividend date to gain entitlement.

So, if the ex-dividend is Thursday, then investors need to buy shares before the end of trading on Wednesday.

Let's look at four of the names that are about to go ex-dividend.

Reece Ltd (ASX: REH)

Reece is one of the largest bathroom suppliers in Australia and the south half of the US.

It's on course to pay a 17 cent dividend per share on 25 October 2023. The ex-dividend for this one is 10 October 2023, which is next Tuesday.

The dividend comes fully franked, which means the payment suggests a grossed-up dividend yield of 1.3%, or 0.9% excluding franking credits.

Duxton Water Ltd (ASX: D2O)

Duxton Water owns a large amount of water entitlements in Australia which are leased to agricultural operators on short-term and long-term leases.

The ASX All Ords share is planning to pay a dividend per share of 3.5 cents on 27 October 2023. The ex-dividend date for this one is 12 October 2023, which is next Thursday.

The ASX All Ords share's fully franked yield is 2%, or 2.9% grossed-up.

United Overseas Australia Limited (ASX: UOS)

The business is mainly involved in developing property and investing in Malaysia through its controlled entities.

It's going to pay its upcoming 2 cents per share dividend on 6 November 2023, with the ex-dividend date being 13 October 2023, which is next Friday.

The company's unfranked yield is 3.6%.

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman is the business behind the large retail network in Australia (thanks to franchising), and it also has a growing overseas retail presence.

The company is planning on paying its 12 cents per share dividend on 13 November 2023. This dividend from the ASX All Ords share has an ex-dividend date of 13 October, which is next Friday.

Harvey Norman's dividend is fully franked, so the grossed-up dividend yield is 4.4%, or 3% excluding franking credits.

The post Dividends incoming! These ASX All Ords shares go ex-dividend next week appeared first on The Motley Fool Australia.

Much of this gain could be put down to the excitement surrounding the anticipated listing of Li-S Energy Ltd (ASX: LIS). Speaking of which, the lithium-sulphur battery tech company made its debut yesterday, exploding 174% in value. The rampant share price surge benefits PPK, with the company retaining a 45.4% shareholding.

Although much of the excitement took place yesterday, one Australian fund manager remains extremely bullish on PPK's prospects.

Let's take a closer look.

A big bet on ASX-listed PPK

In its August fund update, EGP Capital gave its investors a rundown on the latest for its Concentrated Value Fund. This fund is focused on Australian listed companies with the ambition of outperforming the Aussie index by 3% to 5% on an annual basis.

It was unsurprisingly a solid month for the fund, delivering a return of 6.7%. One of its biggest contributors was the PPK share price. Being the fund's largest holding, investors benefitted from the enthusiasm behind the listing of Li-S Energy.

At the end of August, PPK constituted 15% of the fund's overall holdings — this is nearly double its second-largest holding, United Overseas Australia Limited (ASX: UOS), at 8.8%.

Despite the miraculous returns thus far, EGP Capital holds a deeply positive sentiment towards ASX-listed PPK. As detailed in its monthly report, the fund believes the prospective market opportunity for the Li-Sulphur batteries is immense. In fact, founder and chief investment officer Tony Hansen stated:

I shall be surprised if the stock ever trades below $1 per share (the IPO price is 85c). Executed properly, this is a multi (multi)-billion-dollar opportunity.

One day in and Li-S Energy is sitting well above $2, let alone the $1 zone that Hansen mentions.

Massive market potential

In addition to this, the fund spoke highly of another PPK investment, White Graphene. The company released a table outlining some of its developmental projects.

From this, EGP Capital points out several large market opportunities for the application of White Graphene's boron nitride nanosheets. These include:

• Concrete floor coating: estimated US$1.8 billion annual global market by 2027
• Wood coating: estimated US$12.3 billion annual global market by 2027
• Paint: estimated US$218 billion annual global market by 2028
• Fibreglass: estimated US$25.5 billion annual global market by 2028
• Faux leather: estimated US$57 billion annual global market by 2028
• Ammunition: estimated US$28.4 billion annual global market by 2028
• Wires and cables: estimated US$273.7 billion annual global market by 2028

Based on PPK's final report for FY21, the company owns 59.8% of White Graphene.

Now what?

Finally, the fund addressed the risk posed to investors with the fund holding such a large position in PPK.

In Hansen's words, "The management of each business needs to be careful about ensuring their investors are properly kept appraised of the prospects of each business. This is incredibly hard to do with prospectively world-changing technologies."

As a result, the fund accepts increased volatility but expects strong upside potential for PPK on the ASX.

The post Why PPK (ASX:PPK) and Li-S Energy are this fund's largest positions appeared first on The Motley Fool Australia.

Over the past year the shares are up around 20% from 65 cents a share with the group paying 5.5 cents per share in dividends along the way. That places it on a term-deposit-thumping yield of 7%, although without franking credits as the group earns its profits overseas. 

UOS is also investing heavily in new commercial developments that could help grow cash flows into the future. 

Other more well known REIT or commercial property businesses that have performed superbly over the past year include Charter Hall Group (ASX: CHC) and Mirvac Group (ASX: MGR). They are up 71% and 32% respectively which goes to show how the ultra-low rate environment is leading investors to bid traditional yield shares higher. 

The post United Overseas Australia guides for 14% profit growth appeared first on The Motley Fool Australia.

But what is contrarian investing?

In his book 'Contrarian Investment Strategies' David Dreman explains that contrarian investing is about buying those companies that are so unloved by the market that the likelihood of a positive surprise (and subsequent increase in the share price) is far higher than with other companies. In the long run, Dreman argues that this means that the returns on contrarian strategies are likely to be higher than the market return.

Dreman explains that the limitations of investors in forecasting the future earnings of companies means that surprises are inevitable. The basic premise of contrarian investment strategies is that when one buys companies that are priced as if they are going out of business, forecasting mistakes are most likely to be those that underestimate future earnings.

How do you find a contrarian investment?

According to Dreman, the best way to measure the extent to which a company is out of favour with the market is to use the price-to-earnings, price-to-cashflow, or price-to-book ratios. Investors should buy solid companies with low ratios. These could be companies with low absolute ratio values (i.e., the lowest price-to-earnings ratio of all companies) or low relative ratio values (e.g., the lowest price-to-earnings ratio of all companies in a particular industry).

Tobias Carlisle (in his book The Acquirers Multiple), Joel Greenblatt (in his book The Little Book that Beats the Market) and Dreman himself (in his book Contrarian Investment Strategies) have all reported tests of versions of this contrarian investment strategy with strong returns.

At any given time, investors will find companies that are out of favour with the market.

For example, companies with low price-to-earnings ratios on the ASX currently include:

• Retail Food Group Limited (ASX: RFG),
• The Reject Shop Ltd (ASX: TRS)
• Cash Converters International Ltd (ASX: CCV)

Companies with low price-to-book values include:

• Thorn Group Ltd (ASX: TGA)
• Shine Corporate Ltd (ASX: SHJ)
• United Overseas Australia Limited (ASX: UOS)

Lastly, those with low price-to-cashflow include:

• Collection House Limited (ASX: CLH)
• Qantas Airways Limited (ASX: QAN)
• Shaver Shop Group Ltd (ASX: SSG)
• Air New Zealand Limited (ASX: AIZ)

Foolish Takeaway

Contrarian investment strategies can be profitable because investors systematically underestimate the potential for upside surprises. A basket of low price-to-earnings, low price-to-book value, or low price-to-cashflow companies have been shown to produce strong returns over the long run.

The post Contrarian Investing and the ASX appeared first on The Motley Fool Australia.

Will the local market be able to build on this on Monday? Here are five things to watch:

ASX futures pointing lower.

According to the latest SPI futures, the Australian share market selloff is poised to resume on Monday with a sharp drop at the open. The latest futures contracts are pointing to a decline of 0.9% or 51 points at the bell. This is despite a positive end to the week on Wall Street which saw the Dow Jones rise 1.15%, S&P 500 climb 1.4%, and the Nasdaq storm 2.3% higher.

Wesfarmers Q1 update.

Wesfarmers Ltd (ASX: WES) has stopped providing quarterly sales updates but will make an exception today by providing a quarterly update for its Coles supermarkets ahead of its demerger. According to a note out of Goldman Sachs, it expects a strong first quarter from Coles thanks to its Little Shop promotion. It has forecast comparable store food sales of 4.5% during the quarter. Liquor sales are expected to benefit as well, with comparable liquor sales rising 3.5%.

Michael Hill update.

The Michael Hill International Ltd (ASX: MHJ) share price could come under pressure today after the jewellery retailer provided a trading update after the market close on Friday. Michael Hill saw revenue decline 8.8% and same store sales fall 11% for the three months to September 30. Management admitted that it underestimated marketing and promotional activities required to support its strategic shift away from a reliance on discount based pricing.

Lynas shares rally on review news.

The Lynas Corporation Ltd (ASX: LYC) share price was a strong performer in late trade on Friday and could build on this on Monday. Investors were fighting to get hold of the rare earths producer's shares after Malaysian news outlet Star Online reported that Lynas-critic Fuziah Salleh has withdrawn from the review of its operations in the country.

Shares going ex-dividend.

The shares of telco giant TPG Telecom Ltd (ASX: TPM) are likely to trade lower this morning after going ex-dividend this morning. Eligible shareholders can look forward to receiving the 2 cents per share dividend in their accounts on November 20. The shares of real estate development fund United Overseas Australia Limited (ASX: UOS) are also due to go ex-dividend.

The post 5 things to watch on the ASX on Monday appeared first on The Motley Fool Australia.

Three shares which have been experiencing meaningful insider buying recently are listed below:

Liquefied Natural Gas Ltd (ASX: LNG)

The liquefied natural gas company has experienced even more insider buying this week. According to two change of director's interest notices, both Philip Moeller and Leeanne Bond have been snapping up shares over the last few days. The former picked up 20,000 ADRs (the equivalent of 80,000 ordinary shares) in an over the counter market purchase. Whereas the latter picked up 64,000 shares through on-market trades for an average price of approximately 61 cents per share. This follows rampant insider buying last week and could indicate that insiders feel the company is being undervalued by the market.

Sigma Healthcare Ltd (ASX: SIG)

A change of director's interest notice reveals that non-executive director Kathryn Spargo picked up 40,000 shares through an on-market trade on Friday of last week at a price of 46.5 cents per share. This brought Ms Spargo's holding up to a total of 169,728 shares. The director appears to see value in the embattled pharmacy chain operator and distributor's shares after the significant decline over the last 12 months. While I do think its shares look cheap at present, I'm concerned that company could find it impossible to fill the gap in its earnings from the loss of a major supply contract.

United Overseas Australia Limited (ASX: UOS)

According to a change of director's interest notice, executive chairman Kong Chong Soon has acquired 2,354,000 shares in the company for almost $1.5 million through an off-market trade. These are the only shares that Kong Chong Soon holds in the Malaysia-based real estate development company.

The post Insiders have been buying these ASX shares appeared first on The Motley Fool Australia.

In February, to find companies currently trading at wonderful prices, I sorted ASX stocks over $300 million in market capitalisation by their Sonkin Ratio. The Sonkin Ratio is a robust version of the Price to Earnings ratio. The Sonkin Ratio is simply the Enterprise value of a company divided by its operating earnings adjusted for tax. It can be expressed as:

Sonkin Ratio = (Market capitalisation – Cash + Debt) / EBIT(1 – Tax rate)

The Sonkin Ratio is the multiple of tax-adjusted operating earnings an investor would pay for the stock. Or, how much an investor would have to pay for every dollar of operating earnings.

Here is a March update on 10 of the cheapest companies on the ASX and their Sonkin Ratios.

Gold Road Resources Ltd (ASX: GOR) – 2.98

Spotless Group Holdings Ltd (ASX: SPO) – 4.03

Nine Entertainment Co Holdings Ltd (ASX: NEC) – 4.57

Mount Gibson Iron Limited (ASX: MGX) – 4.95

Village Roadshow Ltd (ASX: VRL) – 5.49

Tribune Resources Ltd (ASX: TBR) – 6.49

Resolute Mining Limited (ASX: RSG) – 6.58

United Overseas Australia Limited (ASX: UOS) – 7.25

Seven West Media Ltd (ASX: SWM) – 8.00

Myer Holdings Ltd (ASX: MYR) – 8.06

Fortescue Metals Group Limited (ASX: FMG) – 8.2

Foolish Takeaway

These are 10 of the cheapest stocks on the ASX over a market capitalisation of $300 million. Of course, there are many and varied reasons for why they are cheap. Distinguishing between those that represent bargain prices, and those that are companies in terminal decline is the difficult part.

The post 10 of the cheapest shares on the ASX: March update appeared first on The Motley Fool Australia.

In my opinion the following seven stocks fit into the second category.

Dental chain 1300 Smiles Limited (ASX: ONT) has an excellent track record. It has grown earnings-per-share (EPS) from 9 cents in 2007 to 32.2 cents in 2016. Meanwhile, dividends have increased from 6.8 cents per share to 22.5 cents last year. Despite its strong growth profile, the company has maintained a healthy balance sheet and currently holds $7.5 million in cash and no debt.

The stock has a price-to-earnings ratio (PER) of 23.8 which is reasonable for such a well-run business.

Data#3 Limited (ASX: DTL) is another company with an exemplary management team. As a provider of IT products and services, Data#3 is vulnerable to the business investment cycle but over the long-term it has produced excellent results for shareholders. Dividends per share have risen from 3.6 cents in 2007 to 8 cents last year.

At current prices the stock pays a 5.3% fully franked dividend yield and despite cyclical peaks and troughs I would expect dividends to continue rising over future years.

Financial software company GBST Holdings Limited (ASX: GBT) recorded weak results in 2016 as it transitioned to a new leadership team but has been another strong long-term performer. New CEO Robert DeDominicis has emphasised the need for the company to invest more heavily in R&D which may hold back profits in the short-term but could lead to higher returns later.

The stock trades on a PER of 19 based on adjusted EPS for 2016

Online advertising company Mitula Group Ltd (ASX: MUA) listed in 2015 and operates 79 sites across 49 countries. It is a capital light business with high operating leverage so profits grow faster than revenue and it generates lots of free cash. Many of Mitula's sites are in developing countries which I expect to drive revenue growth over coming years.

Based on my profit estimate for 2016, Mitula currently trades on a PER of 17.

United Overseas Australia Limited (ASX: UOS) has a multi-decade track record of generating superior shareholder returns under the current management team. Unlike many property developers the Malaysia-based company also holds a substantial net cash balance. Despite these qualities, United Overseas trades at a 30% discount to its net tangible assets.

Dental restoratives manufacturer SDI Limited (ASX: SDI) is a family run firm with a long and successful history. Profit growth has returned in recent years following a period of high silver prices and unfavourable exchange rates. The business is becoming decreasingly dependent on silver as it transitions to sales of higher margin composite and ionomer based products and so future shocks are less likely.

Despite its defensive qualities and world class R&D capabilities, SDI trades on a PER of 15.2.

Integrated Research Limited (ASX: IRI) makes software that monitors the performance of companies' IT systems. EPS has risen from 3.3 cents in 2007 to 9.3 cents in 2016 and the company enjoys customer retention rates of over 95%.

With a PER of 24.2, Integrated Research looks good value for the long-term investor.

The post 7 small cap bargains I'd buy right now with $7,000 appeared first on The Motley Fool Australia.

Here are 6 cheap small-cap companies, with very low P/E ratios, that appear to have been completely missed by the market – or perhaps there's a very good reason that the shares appear cheap.

TFS Corporation Limited (ASX: TFC)

The Indian sandalwood plantation manager and sandalwood producer has a P/E ratio of just 5.7% at the current price of $1.44. In the 2016 financial year, TFS Corp produced a net profit of over $90 million, compared to its current market cap of $559 million, but as I noted two weeks ago, the company's actual cash profit was just $14.1 million, with most of the profit coming from accounting gains. That places TFC Corp on a P/E ratio of 39x – not exactly cheap by any standards.

Cedar Woods Properties Limited (ASX: CWP)

The property developer's shares are currently trading on a P/E of 8.8x, after producing a profit of $43.6 million in the 2016 financial year. Additionally, shareholders are getting a fully franked dividend of 5.8% and the bonus is that the company expects to report a similar profit in 2017 as it did in 2016. I've written about Cedar Woods numerous times before and how it appears attractive, and the market has yet to catch on.

United Overseas Australia Limited (ASX: UOS)

United Overseas is a neglected stock on the ASX – most likely because the majority of its assets are holdings in property companies located in Malaysia. The shares almost always trade at a discount to its net tangible assets (84 cents at the end of June 2016 compared to a share price of 61 cents) and UOS reported a half-year net profit of $55 million. Yet its market cap is just $334 million. Add in a decent 4.9% dividend (unfranked) and UOS looks very attractive.

Peet Limited (ASX: PPC)

Another property developer, Peet's shares are trading on a P/E ratio of 11.5x – not as cheap as the 3 companies above, but still cheap compared to the market. With a market cap of $487 million and a net profit of $42.6 million, Peet's shares look cheap, particularly with the company forecasting earnings growth in FY2017 supported by the economic environment. A fully franked 4.5% dividend is also on offer.

Elders Ltd (ASX: ELD)

The rural services company is trying to attract investors back to it after a number of years in the wilderness. Elders had turned itself into a jack-of-all-trades and its business into a mess and has taken the better part of 3 years to sort itself out. But a revived business, clearer strategy and cleaner focus still see the company's shares trade on a P/E ratio of just 8x, despite a net profit of $19.4 million for the six months to end of March 2016 – up 20% over the previous year. A stronger second half is also forecast.

Donaco International Ltd (ASX: DNA)

The operator of two small casinos in Asia, Star Vegas in Cambodia and the Aristo International Hotel in Vietnam, Donaco has a market cap of $395 million and recently announced its first-ever dividend for shareholders. That came on the back of an underlying net profit of $54.4 million, placing the company on a P/E of 7.3x. The company says it expects to continue growing earnings in the year ahead with a number of new initiatives in place. Perhaps the market thinks the shares are too risky – hence the low P/E ratio.

The post 6 dirt cheap small caps appeared first on The Motley Fool Australia.

Under the leadership of major shareholder Peter Harris, operating profit has risen from NZ$5 million in 2010 to NZ$60 million in 2015. Based on results for the first half of 2016 I estimate the stock trades on a forward price-to-earnings ratio (PER) of under 18.

However, that does not include any contribution from the proposed acquisition of Securities and Financial Solutions Europe SA (SFS). SFS is a Managing General Agent (MGA) and as such earns revenue from brokerage and fees, but does not bear insurance risk. SFS is a major distributor for CBL and has grown earnings before interest, tax, depreciation and amortisation (EBITDA) from €3 million in 2013 to €8.7 million in 2015.

Since I first wrote about SDI Limited (ASX: SDI) at the beginning of August, shares in the dental restoratives company are up 31%. The company reported a 22% increase in net profit after tax (NPAT) in 2016 to $7.6 million and has guided for revenue growth for 2017.

SDI's sales mix is shifting from amalgam products to composites, ionomers and whiteners. Amalgam products contain silver and generate lower profit margins compared to non-amalgam products.

Therefore, SDI is set to benefit from both a reduced dependency on silver prices and higher margins over coming years. Also, as total revenue increases, the company should be able to keep its indirect costs relatively fixed driving further profit growth.

Despite its recent rise, SDI is trading on a PER of 12 based on my estimated NPAT for 2017. This appears good value for a defensive business with market-leading products operating in a growing industry.

Shares in Malaysian property developer United Overseas Australia Limited (ASX: UOS) are up 18% since I named them as my top pick for September. The company recently released results for the first half of 2016 showing a 43.7% increase in profit attributable to owners.

Even after this month's rally, UOS trades at a 24% discount to its net asset value and pays a 4.8% dividend. The company also has a great long-term track record as a listed entity with shares up over 280% in the past 10 years and dividends and capital returns representing further gains of more than 150%.

The post 3 under-the-radar growth stocks for your watch list appeared first on The Motley Fool Australia.

Mike King: IVE Group Ltd (ASX: IGL)

Nominated as my top stock pick for June, IVE Group makes it into September as well on the back of strong recent results. IVE recently reported a net profit of $20.9 million placing it on a price earnings ratio of 9.6x at a price of $2.25 and it pays a dividend yield of 8%. The company is a marketing and print communications provider and the market leader in its sector, but still with a tiny market share of 8%. IVE counts a number of Australia's leading companies and multinationals as clients including Vodafone, Toyota, AMP, Foxtel, Commonwealth Bank and Bauer Media Group.

Motley Fool writer/analyst Mike King has no financial interest in IVE Group.

Sean O'Neill: A2 Milk Company Ltd (Australia) (ASX: A2M)

a2 produces milk that contains only a2 proteins, which are reportedly healthier than regular milk, which contains both a1 and a2 proteins. In recent years, a2 has been able to charge a premium price for its products, and has grown significantly in Australia. Now it is expanding into the UK, USA, and China, and infant formula has become its main seller at more than 50% of sales. As a2 spends more on brand building and research (to validate its health claims) the company has ample room to grow in all four markets. I've bought shares both above and below today's prices, and feel a2 is good value today.

Motley Fool contributor Sean O'Neill owns shares in a2 Milk Company. 

Matt Brazier: United Overseas Australia Limited (ASX: UOS)

This Malaysian property developer has a share price of 52.5 cents and is trading at a sharp discount to its 84 cents of net tangible assets. The group paid 3 cents of dividends last year representing a dividend yield of 5.7%. For the first half of 2016 United Overseas recorded a $55 million net profit attributable to security holders, up 43.7% on the same period last year. The group has a market capitalisation of $678.3 million and hundreds of millions of dollars in net cash, so it looks like a bargain based on book value, dividend yield and profit.

Motley Fool contributor Matt Brazier owns shares in United Overseas Australia Limited.

Rachit Dudhwala: Village Roadshow Ltd (ASX: VRL)

In August, Village Roadshow reported a 60% fall in net profit for the 2016 full-year, despite peer Ardent Leisure reporting yet another surge in profit for the same period. Although Village's results were ordinary at best, management is taking proactive steps to rebase earnings by chasing additional revenue streams and business ventures. Whilst the strategy carries more risks, at current prices Village trades on a robust 5.8% fully franked yield and appears cheap on a price-earnings basis. The current risk-reward makes Village Roadshow my top stock to watch in September given a return to growth is an imminent possibility.

Motley Fool contributor Rachit Dudhwala has no financial interest in Village Roadshow.

Alan Edmunds: RCG Corporation Ltd (ASX: RCG)

After reporting underlying net profit growth of over 142% on the prior year and issuing guidance for a 50% rise in underlying EBITA for 2017, RCG Corporation's share price fell by over 10%. In my opinion the report was outstanding and the market is being short-sighted focusing on lower-than-expected recent like-for-like sales. I believe this to be a temporary occurrence brought on by the federal election and as such the current price presents investors with an excellent entry point.

Motley Fool contributor Alan Edmunds owns shares in RCG Corporation.

Christopher Georges: Blackmores Limited (ASX: BKL)

Blackmores shares have fallen by around 25% since the vitamin maker announced that its FY17 first quarter sales are likely to be below that of the prior corresponding period. Changes to Chinese import regulations have clearly affected the supply dynamics into the region, although I believe this to be a temporary phenomenon with demand for Blackmores' products still expected to grow strongly as the year progresses. As a result, I believe the recent pullback presents an attractive buying opportunity for investors.

Motley Fool contributor Christopher Georges owns shares in Blackmores.

Ryan Newman: Retail Food Group Limited (ASX: RFG)

Retail Food Group has enjoyed tremendous success since it listed on the ASX, growing earnings and dividends in spectacular fashion. That trend continued in financial year 2016 with revenue up 30.5% and net profit up 20.5%. It also increased its full-year dividend by 18.3% to 27.5 cents fully franked. That equates to a yield of 4.1%, or 5.8% grossed up, with the potential for even more growth from here. The company owns brands such as Gloria Jean's, Crust Pizza and Pizza Capers. It's also expanding its operations internationally, which has the potential to push the share price higher over the coming years.

Motley Fool contributor Ryan Newman owns shares of Retail Food Group. 

James Mickleboro: Touchcorp Ltd (ASX: TCH)

The shares of cloud-based software developer Touchcorp have slumped in the last couple of weeks despite it posting a 21% increase in full year revenue to $22.5 million and an incredible 71% rise in net profit before tax to $7.2 million. Considering its debt-free balance sheet, strong growth prospects, and its large holdings in a number of exciting young tech companies, I believe this has left its shares trading at a fantastic price for investors.

Motley Fool contributor James Mickleboro has no financial interest in Touchcorp Ltd. 

Matt Bugden: Aconex Ltd (ASX: ACX)

With its construction collaboration platform, Aconex is one of the most innovative technology companies on the ASX today. It has an attractive software-as-a-service business model and massive potential in a huge global industry.

Shares have always appeared expensive as they continued to march higher since the 2014 IPO. However, they have recently fallen close to 30% despite strong results announced last week. At around $6.40, they are worthy of a small position for long-term investors. Eight analysts have set 12-month price targets of between $7.40 and $10.

Motley Fool contributor Matt Bugden has no financial interest in Aconex.

Tim McArthur: Platinum Asset Management Limited (ASX: PTM)

Platinum is a highly regarded international fund manager with nearly $23 billion in funds under management (FUM). Like all portfolios, the underlying performance of Platinum's funds will sometimes outperform and sometimes underperform. This naturally leads to shifts in the level of support for its money management services.

In FY 2016, the ebb and flow of the investment cycle was against Platinum with the company experiencing a net outflow of approximately $1.5 billion in FUM. Despite the turbulence, I believe the future for Platinum remains bright, with the stock trading at a 52-week low, I suspect it could prove a solid investment in the years ahead.

Motley Fool contributor Tim McArthur has no financial interest in Platinum Asset Management Limited.

Edward Vesely: Brambles Limited (ASX: BXB)

Brambles recently announced constant-currency growth in underlying profit and earnings-per-share of 9% and 7% respectively. Much of this as a result of strong net new business wins, strong like-for-like volume growth and pricing gains in its global pallets operations.

Despite this, its share price has fallen almost 8% since its full-year profit announcement on 18 August to give buyers of the shares a partly-franked dividend yield of approximately 2.3%. Management stated that growth for the next financial year is expected to be between 9% -11% and the shares look reasonable value over a three-year time frame.

Motley Fool contributor Edward Vesely has no financial interest in Brambles.

Tom Richardson: Macquarie Group Ltd (ASX: MQG)

I continue to like Macquarie as an investment given its shift into the asset management space and the stock's valuation. Nowadays it is commonly described as an asset manager that also does investment banking and its adaptability is a real strength. Given it also offers exposure to a stronger US dollar and capital markets with a bumper 5% yield I expect the business and share price will outperform the market over the short and long term.

Motley Fool contributor Tom Richardson owns shares in Macquarie Group.

The post Top stock picks for September appeared first on The Motley Fool Australia.

Earlier this month, debt collection and consumer lending business Credit Corp Group Limited (ASX: CCP) released a strong set of financial results for 2016. Revenue, earnings-per-share and dividends all grew by double digits and the company significantly increased the size of its loan book and debt ledger which will drive growth in future years.

Credit Corp still looks reasonable value even though its shares rose strongly following the announcement. The stock is trading on a forward price-to-earnings ratio (PER) of under 15 and comes with a fully franked dividend yield of at least 3.3% based on management's guidance for 2017.

New Zealand-based CBL CORP FPO NZ (ASX: CBL) is an international insurance provider which only listed in October 2015. Since then the shares have risen 67.2%, but still do not look expensive.

The company has grown strongly in recent years thanks to its focus on niche insurance lines and in June announced plans to acquire Securities and Financial Solutions Europe SA (SFS). CBL will pay $143 million to acquire SFS, which is France's largest specialist construction insurance agent and CBL's biggest client.

Managing director Peter Harris owns 26.8% of CBL and has run the company since 2007. Meanwhile, non-executive director Alistair Hutchison owns 23.4% and so board and shareholder interests are well aligned.

Including an annualised contribution from SFS but without assuming any growth in 2016, I estimate that CBL is trading on a PER of about 13. The company's dividend policy is to pay out 30% of adjusted net profit after tax (NPAT) which implies a dividend yield of 2.3% at current prices.

Malaysian property developer United Overseas Australia Limited (ASX: UOS) is ridiculously cheap quite frankly. The company pays a 6.1% dividend, has a large net cash holding and is trading at a 36% discount to its $986 million net asset value. Based on last year's earnings-per-share (EPS) of 9.9 cents, UOS trades on a PER of less than 5.

Normally you would expect there to be something seriously wrong with a company that is so cheap, but UOS has an exemplary track record as a listed entity. The share price has risen by over 200% in the past 10 years with dividends and capital returns representing a further 169% gain.

In an ultra-low interest rate environment, it seems only a matter of time before the market latches on to this bargain hiding in plain sight.

The post 3 cheap mid cap stocks for your growth portfolio appeared first on The Motley Fool Australia.

1. Lend Lease is a complicated business spanning four continents with operations from managing retirement villages through to constructing railways. Such diversification spreads geographical and industry risk, but can also lead to inefficiency. In 2014, the Group Services division reported a loss before tax of $218 million, compared to $179 million in 2013, a significant drag on overall profits.
2. Lend Lease carries out projects that take several years and sometimes decades to complete. Therefore yearly profit numbers are based on estimates and cash flows are extremely lumpy. Similarly, it is difficult to know what its assets are really worth since they largely consist of partially completed projects, construction materials and investment properties.
3. Development and construction companies are capital intensive businesses, which are unable to grow quickly and produce little spare cash for shareholder returns. Lend Lease manages to pay a healthy 4.7% dividend yield, but I notice its debt has grown significantly over the past five years.
4. There is a tendency for developers to borrow too much given their high funding requirements. Lend Lease is comfortable in this regard since its debt-to-equity ratio is around 13% based on 2014 financials. The problem is that we are currently experiencing an upswing in the property cycle. Should things turn sour, some of Lend Lease's assets may shrink in value, whilst its lenders simultaneously demand their money back.
5. Given the complexity of Lend Lease and difficulties in measuring its profits and assets, I would require a large margin of safety before buying its shares. However, based on its 2015 guidance, it trades on a high enterprise value to earnings ratio (EV/E) of around 18. It is also trading at a huge 170% premium to its net tangible assets.

A better alternative?

United Overseas Australia Limited (ASX: UOS) is another property developer, but with a far simpler business model. The company's operations are based solely in Malaysia where it develops and invests in commercial and residential property. The group structure is quite complex though, with a 68% ownership interest in developer, UOA Development BHD, and a 46% stake in the UOA Real Estate Investment Trust.

Over the past 10 years, United Overseas Australia's earning per share have risen from 3.1 cents to 7.6 cents. I estimate its share of group net cash is $176 million and profits attributable to shareholders were $87 million in 2014. The company is dual listed in Australia and Singapore, with a total market capitalisation of $627 million. Therefore, its EV/E is just over 5 at current prices, which is incredible value.

The stellar track record of the company, the high level of management ownership and its low price make United Overseas Australia one of the best value stocks around. The only drawbacks are the convoluted ownership structure, its low liquidity and its exposure to the booms and busts of a developing country's property market.

The post 5 things you should know before buying Lend Lease Group appeared first on The Motley Fool Australia.

I won't bore you with the intricacies of our arrangements but I exercise influence over a decent chunk of Mum's money and I tend to put her in lower risk options. Here are four stocks I have picked for her:

Bentham IMF Limited (ASX: IMF) is Mum's smallest company and even it is a relative big boy in my portfolio. The $322 million company is up 15% since I added it to my portfolio at $1.70, but I still think it is a decent option. At current prices the litigation funder trades on a trailing yield of 3.8%, but the dividend is susceptible to moving both up and down, so don't rely on it. I like Bentham IMF because it profits from dishonesty and incompetence at high levels and believe you me both are going strong.

TPG Telecom Ltd (ASX: TPM) is a $4.7 billion telecommunications company that owns significant infrastructure assets, in particular fibre optic cables. At current prices it's a bit too expensive to be a clear buy and it only yields a paltry 1.4%. However, management has demonstrated respect for shareholders over the long term and I personally prefer its model over the asset-light approach favoured by M2 Group Ltd (ASX: MTU). Those focussed on profits, growth and in particular return on equity will of course prefer the smaller M2, but if you are looking to get aboard the fibre optic express it is hard to ignore TPG.

I can't claim any credit for picking Tassal Group Limited (ASX: TGR) though it was picked for me by two of my mentors – both at below $1.50. They are taking some profits now so I wouldn't be buying, but the Tasmanian salmon farmer remains an excellent way to gain exposure to primary production of food. Tassal yields over 2.5% despite the fact that the share price has risen to $4.

Another one I can't claim credit for is United Overseas Australia Limited (ASX: UOS) a Malaysian property developer that is actually expanding into Burma, I mean Myanmar. My contact in the country tells me that the place they are trying to develop is certainly crying out for it, but that there is still some risk because a lot of the power will be with the local partner. Nonetheless, the company has no debt and plenty of cash so it can afford to venture into new territory. The company yields over 4.5% and trades at under book value.

The post 4 stocks I would buy for my mother appeared first on The Motley Fool Australia.

Index funds buy and sell companies in accordance with their size, and therefore achieve slightly under average returns (to account for fees). Many large active funds, especially superannuation funds, tend to charge high fees and basically hug the index – so often do noticeably worse than average over the long term. In comparison, both value investing and momentum investing have been show to produce superior results, though these styles of investing are more difficult to achieve. For those who like to receive ongoing income, dividend-paying companies will be easier to hold for long periods of time, resulting in higher overall returns. If you're looking to buy undervalued dividend stocks, start with these three companies.

United Overseas Australia Limited (ASX: UOS) is a holding company that owns shares in a number of other companies. The main assets are shares of UOA Development Bhd (UOABD), a Malaysian property developer, and UOA Real Estate Investment Trust (UOAREIT), a Malaysian real estate trust, though the ownership structure is ridiculously complex and includes a number of other assets. Both UOADB and UOAREIT trade on the Malaysian stock exchange. Boutique fund manager Tony Hansen has published the preeminent analysis of the company, for those interested.

United Overseas Australia has a very rare characteristic: it trades at well below book value and pays a dividend – it may even be the only Australian company that Benjamin Graham would have considered investing in! According to the Australian market, United Overseas Australia is worth about $588 million. Yet according to the Malaysian stock market, it's worth a lot more than that. Behold these figures (based on the 2013 Annual report):

UOA Development Bhd | UOS Ownership: 68.23%
Earnings: $119 million | UOS Share: $81 million
NTA: $869 million | UOS Share: $592 million
Market Cap: $1,031,770,000 | UOS Share: $703 million

UOA REIT | UOS ownership 46.25%
Earnings: $15 million | UOS Share: $6.9 million
NTA: $216 Million | UOS Share: $99.9
Market Cap: $197,717,000 | UOS Share $91.4 million

The main risk with UOS is that the entire Malaysian property market is headed for a crisis or crash. If that does happen, the company will be in a position to capitalise on the opportunity because it has no significant debt. However, earnings would take a big hit, and the dividend might shrink or even stop temporarily. Given management's great track record I'm inclined to think that even in the worst case scenario, investors could make a good return if they simply continued to hold. Keep in mind that I've only covered two of the company's assets – it also owns (parts of) a number of other properties from which it derives steady income and cash flow.

If you can stomach exposure to the Malaysian property market, then the history of modest share price appreciation combined with a reasonable dividend will be attractive, especially given the apparent margin of safety. It's worth noting that United Overseas Australia sometimes develops former slums: some people may have reservations about that. I can live with that, as all development will upset someone. Clearing slums is nowhere near as bad as dumping dredge in the Great Barrier Reef Marine Park, in my opinion.

A perhaps more exciting option would be to invest in accounting software developer and retailer Reckon Limited (ASX: RKN). Although I don't own shares, Reckon is near the top of my watchlist because of its divided yield of 4.4% and an impressive history of sustained growth, prior to being somewhat disrupted by the switch to software-as-a-service.

Reckon has recently made the decision to develop its own software rather than continuing to pay licensing fees to Intuit. I think that is a dangerous path, but it could well pay off for shareholders. In particular, it seems likely to me that Reckon will be able to continue to provide specialist software to many accountants. At the moment, I'm afraid its retail offering might get caught between a rock and a hard place as XERO FPO NZ (ASX: XRO) and MYOB battle it out. That's what causes me to hesitate and that's probably why the share price has taken a hit.

If you're after sustainable cash flows and a predictable business, it's hard to go past M2 Group Ltd (ASX: MTU). The asset light telco's share price has taken a beating of late, and the stock yields over 4% at current prices. At its most basic level, M2 borrows money to buy customers (that is, it buys other telcos) then profits from improved economies of scale. However, its current high levels of debt mean that – in my opinion – it needs to consolidate a bit before making another acquisition.

M2's most important business is selling broadband connections, and internet customers are generally very sticky – when's the last time you changed your internet provider? As M2 pays down debt, its cash flow improves and it can afford to either make another acquisition or increase its dividend. If the company also manages some organic growth, it's very likely the share price is good value at current prices.

Foolish takeaway 

Each of these stocks pays a dividend of over 4% – far better than a term deposit. Of these companies, UOS looks best value, followed by Reckon then M2. Reckon is on my watchlist because if customer numbers grow (despite the competition) then it is currently a clear bargain. I'll be ready when the company next reports (if it's not too late). United Overseas Australia is a stalwart in my portfolio, because I think even if the Malaysian property market crashes (which is possible) the company will survive and probably take advantage of the situation.

The post 3 dividend stocks every value investor must know appeared first on The Motley Fool Australia.

Although Mr Malone has left iiNet, there are plenty of other ASX-listed companies that are still guided by a passionate founder. Indeed, it is that passion which makes founder-leaders so valuable. In my view, a passionate founder is unlikely to take a huge salary while running the company into the ground. Of course, hubris can bring down any organisation, and founders are human too. Nonetheless, where a founder takes a substantial portion of his or her "pay" in the form of a dividend, incentives are aligned nicely.

More importantly, because founders are human, most of them really care that their company succeeds over the long term.  It's only natural to feel an emotional attachment to an organisation you've built up from scratch. More often than not, they stick to it, even when times are tough.

This is a valuable trait: all too often short-term thinking brings a company to its knees. Fairfax Media Limited (ASX: FXJ) and Forge Group (ASX: FGE) are great examples of the destruction of shareholder wealth that ensues when the board of directors lacks a long-term view. The odds that a company will be a good long-term investment are better when the founder (with a long-term view) remains influential.

Without further ado, here's a list of 10 founder driven and guided companies on my watchlist. Please note that figures are approximate and the remuneration refers to FY 2013 remuneration, according to the most recent annual reports. The shareholdings do not include options.

Anteo Diagnostics Limited (ASX: ADO) Recent share price: 25c

Founder: Dr. N Joe Maeiji
Position: Chief Scientific Officer
Shareholding: 6,315,781 shares
Remuneration: $231,603

I recently sold some of my shares in Anteo Diagnostics for 26.5c as part of my attempt to reduce my exposure to speculative stocks.

My Net Fone Limited (ASX: MNF) Recent share price: $2.10

Co-Founder: Rene Sugo
Position: CEO
Shareholding: 14,488,955 shares
Remuneration: $300,000

Co-Founder: Andy Fung
Position: Non-executive director
Shareholding: 14,488,955 shares
Remuneration: $53,511

My Net Fone continues to perform strongly as a business, but I recently sold some of my holding at slightly above current prices.

United Overseas Australia Limited (ASX: UOS) Recent share price: 53c

Co-Founder: Chong Soon Kong
Position: Executive Chairman/Chief Executive Officer
Shareholding: 776,361,138
Remuneration: $1,528,219

Co-Founder: Pak Lim Kong
Position: Executive Director
Shareholding: 596,265,136 shares
Remuneration: $1,527,727

United Overseas Australia recently released its annual reports, demonstrating once again that the company trades well under intrinsic value. I believe that it is consistently undervalued because the founders have complete control, there is very little liquidity, the company's operations are based in Malaysia and the accounts are somewhat complex (because it is a holding company).

Seek Limited (ASX: SEK) Recent share price: $17.15

Co-Founder: Andrew Bassat
Position: CEO
Shareholding: 13,942,506  shares
Remuneration: $3,916,754

Seek has performed outstandingly as a business, and in light of recent share price movements, I was a fool to have sold my shares.

Vocus Communications Limited (ASX: VOC) Recent share price: $4.72

Founder: James Spenceley
Position: CEO
Shareholding: 4,200,000 shares
Remuneration: $412,176

Mr Spenceley recently sold 1,800,000 shares on market. Vocus recently undertook a capital raising, and I recently sold some of my holding at $5.

Reckon Limited (ASX: RKN) Recent share price: $2.05

Co-Founder: Greg Wilkinson
Position: Non-executive chairman
Shareholding: 7,450,000
Remuneration: $103,669

I think Reckon is currently trading at attractive prices as it transitions to providing cloud based software as a service under the new brand Reckon One.

Caresales.com Limited (ASX: CRZ) Recent share price: $10.90

Founder: Greg Roebuck
Position: CEO
Shareholding: 5,382,891 shares
Remuneration: $2,261,721

Carsales is one of the companies that has overseen the destruction of newspaper businesses in Australia. If you want to buy part of the advertising 'rivers of gold,' Carsales.com is one of your options.

Foolish takeaway

The companies mentioned above have all made early shareholders ridiculous amounts of money, thanks in part to the ingenuity, passion and drive of their founders. Reviewing my portfolio, it seems that over 85% of my companies benefit from the contribution of their founders; that's a situation I'm happy with.

Of the companies mentioned above, I currently think that Reckon and UOS trade at the most attractive prices. If you're interested in founder driven companies, let me know or sign up below, and I'll continue to explore this theme in subsequent articles.

The post 7 stellar stocks still guided by their founders appeared first on The Motley Fool Australia.